Indonesian Political, Business & Finance News

Baznas Allocates Rp1.5 Billion to Boost Sumatera Community Economy

| Source: ANTARA_ID Translated from Indonesian | Social Policy
Baznas Allocates Rp1.5 Billion to Boost Sumatera Community Economy
Image: ANTARA_ID

Jakarta — Indonesia’s National Zakat Board (Baznas) has distributed assistance totalling Rp1.5 billion through the “Kita Jaga Usaha” (We Protect Business) Programme Stage I, marking an effort to revive the economy for micro-entrepreneurs affected by disasters in Sumatera.

The funds have been allocated to 1,500 beneficiaries across 12 districts and municipalities spread throughout Aceh, North Sumatera, and West Sumatera provinces. Each beneficiary receives a grant of Rp1 million, transferred directly to individual bank accounts to ensure transparency and accuracy in aid distribution.

According to Baznas officials, the Kita Jaga Usaha Programme has been specifically designed to provide economic assistance to micro, small and medium enterprise (MSME) operators whose businesses have been devastated by disasters, enabling them to recover quickly. “We want to ensure that the business capital provided can serve as a stimulus for sustainable economic independence for our beneficiaries,” they stated.

The success of this programme represents the outcome of strong humanitarian collaboration between Baznas and partner organisations, with 51 partners contributing to supporting economic recovery in disaster-affected communities.

Looking ahead, Baznas aims to expand the programme to reach up to 5,000 beneficiaries across all regions of Sumatera with a total budget of Rp5 billion.

Beneficiaries are selected based on strict criteria: micro-entrepreneurs with daily turnover below Rp500,000 or monthly income below the Regional Minimum Wage (UMR). Priority is given to self-employed business owners who have clear business development plans but are hindered by capital constraints due to natural disasters.

Beyond providing capital assistance, Baznas collaborates with regional zakat boards to monitor and mentor the business development of programme beneficiaries. This measure ensures that the assistance is not spent on consumption but is genuinely reinvested as productive working capital.

Through the launch of the Kita Jaga Usaha Programme, Baznas hopes to reduce poverty rates in post-disaster areas through strengthening grassroots sectors. With capital properly managed, micro-entrepreneurs are expected not only to maintain their businesses but also to progress and become donors (muzaki) in the future.

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